2019-06-17 09:03:26 Payroll English State by State guide to understanding minimum wage requirements https://quickbooks.intuit.com/r/us_qrc/uploads/2019/06/Minimum_Wage_by_State_Guide_featured.jpg https://quickbooks.intuit.com/r/payroll/minimum-wage-by-state-guide/ Minimum Wage by State Guide

Minimum Wage by State Guide

14 min read

Can you navigate the complicated web of minimum wage laws and rates that apply to your business?

You’re perfectly justified if you find minimum wage rates confusing. Not only does the federal government establish a minimum wage that covers most US employers, 30 states, and about 40 local governments have also established minimum wage laws.

To confuse matters further, minimum wage became a hotly debated topic in the last few presidential elections. Minimum wage-related news stories grabbed headlines, many with conflicting reports.

While some state and municipal governments have passed groundbreaking increases to minimum wage rates in recent years, other states have passed legislation that expressly prohibit state and local governments from enacting minimum wage rates that exceed the federal minimum wage rate

Where should you start?

We have compiled a complete State by State guide to minimum wages at the federal, state, and local level.

Want an easier way to manage your payroll including minimum wage? Check out QuickBooks Payroll.

Use this navigation to jump to your state:

ALABAMA ALASKA ARIZONA ARKANSAS CALIFORNIA
COLORADO CONNECTICUT DELAWARE FLORIDA GEORGIA
HAWAII IDAHO ILLINOIS INDIANA IOWA
KANSAS KENTUCKY LOUISIANA MAINE MARYLAND
MASSACHUSETTS MICHIGAN MINNESOTA MISSISSIPPI MISSOURI
MONTANA NEBRASKA NEVADA NEW HAMPSHIRE NEW JERSEY
NEW MEXICO NEW YORK NORTH CAROLINA NORTH DAKOTA OHIO
OKLAHOMA OREGON PENNSYLVANIA RHODE ISLAND SOUTH CAROLINA
SOUTH DAKOTA TENNESSEE TEXAS UTAH VERMONT
VIRGINIA WASHINGTON WEST VIRGINIA WISCONSIN WYOMING

Federal Minimum Wage

The Fair Labor Standards Act (FLSA) is the federal law that sets minimum wage requirements for workers in the US.

Under the FLSA, the current federal minimum wage is $7.25 per hour. You must pay your nonexempt employees the greater of any applicable federal, state, or local minimum wage.

Alabama

No Alabama law establishes a state minimum wage; therefore, the federal minimum wage applies.

The Alabama Department of Labor manages wage and hour issues for Alabama.

Alaska

As of January 1, 2019, the minimum wage in Alaska is $9.89. That rate is subject to annual indexing, which will adjust the minimum wage accordingly.

The Alaska Department of Labor and Workforce Development, Division of Labor Standards and Safety manages minimum wage issues for Alaska.

Arizona

As of January 1, 2019, the minimum wage in Arizona is $11.00. The minimum wage will increase to $12.00 on January 1, 2020. The minimum wage will be subject to annual indexing starting January 1, 2021.

The Arizona minimum wage does not apply to small business, which are business that:

  • Earn less than $500,000 in gross revenue, and
  • Are exempt from the federal minimum wage

Additionally, Flagstaff passed a city ordinance that raised its minimum wage to $12.00, effective January 1, 2019. Flagstaff will raise its minimum wage to $13.00 on January 1, 2020. Flagstaff’s minimum wage will increase again on January 1, 2021 to the greater of:

  • $15.00, or
  • $2.00 above the Arizona state minimum wage

Flagstaff’s minimum wage will increase again on January 1, 2022 to the greater of:

  • $15.50, or
  • $2.00 above the Arizona state minimum wage

Flagstaff’s minimum wage will become subject to annual indexing on January 1, 2023.

The Industrial Commission of Arizona manages minimum wage issues for Arizona.

Arkansas

As of January 1, 2019, the minimum wage in Arkansas is $9.25. The minimum wage will increase to $10.00 on January 1, 2020; and $11.00 on January 1, 2021.

The Arkansas Department of Labor manages minimum wage issues for Arkansas.

California

As of January 1, 2019, California includes two minimum wage rates at the state level:

  • $12.00 for employers of more than 25 employees
  • $11.00 for employers of 25 or less employees

For each of the above categories, the minimum wage will increase one dollar each year on January 1 of 2020, 2021, and 2022 . The minimum wage rates will become subject to annual indexing, effective January 1, 2024.

Additionally, 27 additional local governments in California have passed unique minimum wage requirements. Examples include:

  • Los Angeles: $13.25 for employers of more than 25 employees, $12.00 for employers of 25 or less employees
  • Oakland: $13.80
  • San Diego: $12.00
  • San Francisco: $15.00
  • San Jose: $15.00

The California Department of Industrial Relations manages minimum wage issues at the state level for California. For local government guidance, the state points employers to a UC Berkeley site.

Colorado

As of January 1, 2019, the minimum wage in Colorado is $11.10. The minimum wage will increase to $12.00 on January 1, 2020. The minimum wage will be subject to annual indexing starting January 1, 2021.

The Colorado Department of Labor and Employment manages minimum wage issues for Colorado.

Connecticut

As of January 1, 2017, the minimum wage in Colorado is $10.10.

The Connecticut Department of Labor manages minimum wage issues for Connecticut.

Delaware

As of January 1, 2019, the minimum wage in Delaware is $8.75. The minimum wage will increase to $9.25 on October 1, 2019.

The Delaware Department of Labor manages minimum wage issues for Delaware.

District of Columbia

As of January 1, 2019, the minimum wage in the District of Columbia is $14.00. The minimum wage will increase to $15.00 on January 1, 2020. The minimum wage will be subject to annual indexing starting January 1, 2021.

The DC Department of Employment Services manages minimum wage issues for the District of Columbia.

Florida

As of January 1, 2019, the minimum wage in Florida is $8.46. The minimum wage is subject to annual indexing on January 1 of each year.

The Florida Department of Economic Opportunity manages minimum wage issues for Florida.

Georgia

The last time a Georgia state law set the minimum wage for Georgia was in 2001, when the minimum wage was set to $5.15. Because the federal minimum wage is greater than the Georgia rate, the federal minimum wage applies.

The Georgia Department of Labor manages wage and hour issues for Georgia.

Hawaii

As of January 1, 2018, the minimum wage in Hawaii is $10.10.

The Hawaii Department of Labor and Industrial Relations, Wage Standards Division, manages minimum wage issues for Hawaii.

Idaho

Idaho law requires that Idaho’s minimum wage track the federal minimum wage. Accordingly, as of July 24, 2009, the minimum wage in Idaho is $7.25.

The Idaho Department of Labor manages minimum wage issues for Idaho.

Illinois

As of July 1, 2010, the minimum wage in Illinois is $8.25. The minimum wage will increase to $9.25 on January 1, 2020; $10.00 on July 1, 2020; $11.00 on January 1, 2021; $12.00 on January 1, 2022; $13.00 on January 1, 2023; $14.00 on January 1, 2024; and $15.00 on January 1, 2025.

Additionally, Cook County and Chicago have passed unique minimum wage requirements:

  • Cook County: $11.00
  • Chicago: $12.00

The Cook County minimum wage will increase to $12.00 on July 1, 2019; and $13.00 on July 1, 2020. Some Cook County municipalities have opted out of the Cook County minimum wage.

The Chicago minimum wage will increase to $13.00 on July 1, 2019, and will become subject to annual indexing on July 1, 2020.

The Illinois Department of Labor manages minimum wage issues for Illinois.

Indiana

Indiana law requires that employers of two or more employees pay at least the federal minimum wage. Accordingly, as of July 24, 2009, the minimum wage in Indiana is $7.25.

The Indiana Department of Labor manages wage and hour issues for Indiana.

Iowa

As of July 24, 2009, the minimum wage in Iowa is $7.25.

Many local governments in Iowa; including Johnson County, Linn County, Polk County, and Wapello County; have passed minimum wages higher than the state minimum wage. However, Iowa state law prohibits local governments from adopting minimum wages higher than the state minimum wage. Therefore, the local government minimum wages are unenforceable in Iowa.

The Iowa Workforce Development, Division of Labor manages minimum wage issues for Iowa.

Kansas

As of January 1, 2010, the minimum wage in Kansas is $7.25. The Kansas minimum wage does not apply to employers covered by the FLSA.

The Kansas Department of Labor manages minimum wage issues for Kansas.

Kentucky

Kentucky law requires that Kentucky’s minimum wage track the federal minimum wage. As of July 1, 2009, the minimum wage in Kentucky is $7.25.

The Kentucky supreme court found that a Louisville minimum wage conflicted with state law and is therefore unenforceable.

The Kentucky Labor Cabinet manages minimum wage issues for Kentucky.

Louisiana

No Louisiana law establishes a state minimum wage; therefore, the federal minimum wage applies.

The Louisiana Office of Workforce Development manages minimum wage issues for Louisiana.

Maine

As of January 1, 2019, the minimum wage in Maine is $11.00. The minimum wage will increase to $12.00 on January 1, 2020. The minimum wage will be subject to annual indexing starting January 1, 2021.

The Maine Department of Labor manages minimum wage issues for Maine.

Maryland

As of July 1, 2018, the minimum wage in Maryland is $10.10. The minimum wage will increase to $11.00 on January 1, 2020.

On January 1, 2021, the minimum wage will increase each year depending on the number of employees an employer has.

  • Maryland minimum wage for employers of more than 14 employees
    • January 1, 2021: $11.75
    • January 1, 2022: $12.50
    • January 1, 2023: $13.25
    • January 1, 2024: $14.00
    • January 1, 2025: $15.00
  • Maryland minimum wage for employers of 14 or fewer employees
    • January 1, 2021: $11.60
    • January 1, 2022: $12.20
    • January 1, 2023: $12.80
    • January 1, 2024: $13.40
    • January 1, 2025: $14.00
    • January 1, 2026: $14.60
    • July 1, 2026: $15.00

The above scheduled increases are subject to change by the Maryland Board of Public works depending on annual indexing.

Additionally, Montgomery County and Prince George’s County have passed unique minimum wage requirements:

  • Montgomery County
    • Employers of more than 50 employees: $12.25
    • Employers of 50 or fewer employees: $12.00
  • Prince George’s County: $11.50

The Montgomery County minimum wage is scheduled to increase each year until the minimum wage reaches $15.00. At that point, the minimum wage will become subject to annual indexing.

The Maryland Department of Labor, Licensing & Regulation manages minimum wage issues for Maryland.

Massachusetts

As of January 1, 2019, the minimum wage in Massachusetts is $12.00. The minimum wage will increase to $12.75 on January 1, 2020; $13.50 on January 1, 2021; $14.25 on January 1, 2022; and $15.00 on January 1, 2023.

The Massachusetts Department of Labor Standards manages minimum wage issues for Massachusetts.

Michigan

As of January 1, 2018, the minimum wage in Michigan is $9.25. The minimum wage will increase to $9.45 91 days after the state legislature adjourns for 2018; $9.65 on January 1, 2020; and $9.87 on January 1, 2021. The minimum wage will continue to increase until it reaches $12.05 on January 1, 2030.

The Michigan Department of Licensing and Regulatory Affairs manages minimum wage issues for Michigan.

Minnesota

As of January 1, 2019, there are two minimum wages in Minnesota:

  • Employers with annual gross sales of $500,000 or more: $9.86
  • Employers with annual gross sales less than $500,000: $8.04

Both minimum wage rates are subject to annual indexing.

Additionally, Minneapolis and St. Paul have passed unique minimum wage requirements:

  • Minneapolis
    • Employers of more than 100 employees: $11.25
    • Employers of 100 or fewer employees: $10.25
  • St. Paul (starting January 1, 2020 – currently, state minimum wage applies)
    • Employers of more than 10,000 employees: $12.50
    • Employers of 101 – 10,000 employees: $11.50
    • Employers of 6 to 100 employees: $10.00

Both Minneapolis and St. Paul have schedules to increase minimum wages on a yearly basis.

The Minnesota Department of Labor and Industry manages minimum wage issues for Minnesota.

Mississippi

No Mississippi law establishes a state minimum wage; therefore, the federal minimum wage applies.

No Mississippi government agency manages minimum wage issues for Mississippi.

Missouri

As of January 1, 2019, the minimum wage in Missouri is $8.60. The minimum wage will increase to $9.45 on January 1, 2020; $10.30 on January 1, 2021; $11.15 on January 1, 2022; and $12.00 on January 1, 2023.

Retail employers and service businesses that gross less than $500,000 annually are exempt from the state minimum wage.

Kansas City and St. Louis passed minimum wage ordinances. However, Missouri state law prohibits local governments from adopting minimum wages higher than the state minimum wage. Therefore, the local government minimum wages are unenforceable in Missouri.

The Missouri Department of Labor and Industrial Relations manages minimum wage issues for Missouri.

Montana

As of January 1, 2019, the minimum wage in Montana is $8.50. That rate is subject to annual indexing, which will adjust the minimum wage accordingly.

The Montana Department of Labor and Industry manages minimum wage issues for Montana.

Nebraska

As of January 1, 2016, the minimum wage in Nebraska is $9.00 with no increases currently scheduled.

The Nebraska Department of Labor manages minimum wage issues for Nebraska.

Nevada

As of July 1, 2013, the minimum wage for Nevada employers that offer qualified health benefits is $7.25. For all other Nevada employers, the minimum wage is $8.25.

Nevada announces the updated minimum wage April 1 of each year, with changes taking effect July 1 of the same year. However, the minimum wage has not changed since 2013.

The Nevada Department of Business and Industry manages minimum wage issues for Nevada.

New Hampshire

As of September 1, 2008, the minimum wage in New Hampshire is $7.25. New Hampshire law requires employers to follow the federal minimum wage.

The New Hampshire Department of Labor manages minimum wage issues for New Hampshire.

New Jersey

As of January 1, 2019, the minimum wage in New Jersey is $8.85. The minimum wage will increase to the greater of annual indexing or $10.00 on July 1, 2019; $11.00 on January 1, 2020; $12.00 on January 1, 2021; $13.00 on January 1, 2022; $14.00 on January 1, 2023, and $15.00 on January 2024.

For New Jersey employers of less than 6 employees, the minimum wage will increase to the greater of annual indexing or $10.30 on January 1, 2020. The minimum wage will increase each year thereafter by $0.80 on January 1, through 2025.

The New Jersey Department of Labor and Workforce Development manages minimum wage issues for New Jersey.

New Mexico

As of January 1, 2009, the minimum wage in New Mexico is $7.50. The minimum wage will increase to $9.00 on January 1, 2020; $10.50 on January 1, 2021; $11.50 on January 1, 2022; and $12.00 on January 1, 2023.

Additionally, certain local New Mexico governments have passed unique minimum wage requirements:

  • Alburquerque: $8.20 for employers that provide healthcare or childcare. $9.20 for others
  • Bernalillo County: $8.05 for employers providing healthcare or childcare. $9.05 for others
  • Las Cruces: $10.10
  • City of Sante Fe: $11.80
  • Sante Fe County: $11.80

The New Mexico Department of Workforce Solutions manages minimum wage issues for New Mexico.

New York

As of December 31, 2018, the general minimum wage in New York is $11.10. Certain exceptions apply the general minimum wage depending on location and industry:

  • New York City employers of more than 10 employees: $15.00
  • New York City employers of 10 or fewer employees: $13.50
  • New York City fast food workers: $15.00
  • Fast food workers outside of New York City: $12.75
  • Nassau County: $12.00
  • Suffolk County: $12.00
  • Westchester County: $12.00

Scheduled increases for most of these categories are currently in place through 2020 or 2021 depending on the category.

The New York State Department of Labor manages minimum wage issues for New York.

North Carolina

The minimum wage in North Carolina is the greater of $6.15 or the federal minimum wage (currently $7.25).

The North Carolina Department of Labor manages minimum wage issues for North Carolina.

North Dakota

As of July 24, 2009, the minimum wage in North Dakota is $7.25.

The North Dakota Department of Labor and Human Rights manages minimum wage issues for North Dakota.

Ohio

As of January 1, 2019, the minimum wage in Ohio is $8.55 for employers generally, and the current federal minimum wage for employers that gross $314,000 or less annually. The general rate is subject to annual indexing, which will adjust the minimum wage accordingly.

The Ohio Department of Commerce, Division of Industrial Compliance manages wage and hour issues for Ohio.

Oklahoma

Oklahoma follows the federal minimum wage for employers with more than 9 employees in one location, or that gross more than $100,000 annually. For all others, the minimum wage is $2.00, except for employers that are subject to the federal minimum wage.

The Oklahoma Department of Labor manages minimum wage issues for Oklahoma.

Oregon

As of July 1, 2018, three different minimum wages apply to Oregon employers:

  • Portland metropolitan employers: $12.00
  • Non-urban counties: $10.50
  • All other employers: $10.75

Each of these categories is scheduled to increase the minimum wage through 2023:

July 1, 2019:

  • Portland metropolitan employers: $12.50
  • Non-urban counties: $11
  • All other employers: $11.25

July 1, 2020

  • Portland metropolitan employers: $13.25
  • Non-urban counties: $11.50
  • All other employers: $12.00

July 1, 2023

  • Portland metropolitan employers: $1.25 over the standard “all other employers” rate
  • Non-urban counties: $1.00 below the standard “all other employers” rate
  • All other employers: subject to annual indexing

The Oregon Bureau of Labor and industries’ Wage and Hour Division manages minimum wage issues for Oregon.

Pennsylvania

Pennsylvania law requires that Pennsylvania’s minimum wage track the federal minimum wage. Accordingly, as of July 24, 2009, the minimum wage in Pennsylvania is $7.25.

The Pennsylvania Department of Labor and Industry manages minimum wage issues for Pennsylvania.

Rhode Island

As of January 1, 2019, the minimum wage in Rhode Island is $10.50.

The Rhode Island Department of Labor and Training manages minimum wage issues for Rhode Island.

South Carolina

No South Carolina law establishes a state minimum wage; therefore, the federal minimum wage applies.

The South Carolina Department of Labor, Licensing and Regulation manages minimum wage issues for South Carolina.

South Dakota

As of January 1, 2019, the minimum wage in South Dakota is $9.10. That rate is subject to annual indexing, which will adjust the minimum wage accordingly.

The South Dakota Department of Labor and Regulation manages minimum wage issues for South Dakota.

Tennessee

No Tennessee law establishes a state minimum wage; therefore, the federal minimum wage applies.

The Tennessee Department of Labor and Workforce Development manages wage and hour issues for Tennessee.

Texas

Texas law requires that Texas’s minimum wage track the federal minimum wage. Accordingly, the minimum wage in Texas is $7.25.

The Texas Workforce Commission manages minimum wage issues for Texas.

Utah

Utah law prohibits Utah’s minimum wage to exceed the federal minimum wage. Accordingly, as of July 24, 2009, the minimum wage in Utah is $7.25.

The Utah Labor Commission manages minimum wage issues for Utah.

Vermont

As of January 1, 2019, the minimum wage in Vermont is $10.78. That rate is subject to annual indexing which will adjust the minimum wage accordingly.

The Vermont Department of Labor manages minimum wage issues for Vermont.

Virginia

Virginia law requires that Virginia employers pay employees according to the federal minimum wage. Accordingly, as of July 24, 2009, the minimum wage in Virginia is $7.25.

The Virginia Department of Labor and Industry manages minimum issues for Virginia.

Washington

As of January 1, 2019, the minimum wage in Washington is $12.00. The minimum wage will increase to $13.50 on January 1, 2020, and become subject to annual indexing beginning January 1, 2021.

Additionally, certain local Washington governments have passed unique minimum wage requirements:

  • City of SeaTac: $16.09 for hospitality and transportation industry employers
  • Seattle:
    • Employers of more than 500 employees: $16.00
    • Employers of 500 or fewer employees (w/ additional $3+/hr for medical): $12.00
    • Employers of 500 or fewer employees (w/ no additional for medical): $15.00
  • Tacoma: $12.35

City of SeaTac and Tacoma minimum wages are subject to annual indexing. Seattle has scheduled increases through 2021.

The Washington Department of Labor and Industries manages minimum wage issues for Washington.

West Virginia

As of January 1, 2016, the minimum wage in West Virginia is $8.75.

The West Virginia Division of Labor manages minimum wage issues for West Virginia.

Wisconsin

As of July 24, 2009, the minimum wage in Wisconsin is $7.25.

The Wisconsin Department of Workforce Development manages minimum wage issues for Wisconsin.

Wyoming

As of April 1, 2001, the minimum wage in Wyoming is $5.15. Because this rate is below the federal minimum wage, the current effective minimum wage in Wyoming is $7.25.

The Wyoming Department of Workforce Services manages minimum wage issues for Wyoming.

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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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